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City Edge Financial

Conventional Loans

Conventional loans are loans not backed by any government entities. They offer competitive rates and terms and are funded by private banks and lenders. They have down payment options as low as 3% for first-time homebuyers and are one of the most popular loan programs.

How Does a Conventional Loan Work?

Conventional loans can be conforming or non-conforming. Conforming loans meet the Fannie Mae or Freddie Mac guidelines and can be sold on the secondary market. This helps free up a lender’s capital, allowing them to underwrite and fund more loans.

Conforming loans require higher than average credit scores and low to average debt-to-income ratios. Borrowers who put down less than 20% on their home will pay Private Mortgage Insurance until they pay the balance down to less than 80% of the home’s value.

Non-conforming loans don’t meet Fannie Mae or Freddie Mac guidelines but still offer borrowers a chance to finance a home. They may include jumbo, bank statement, or VOE loans, giving borrowers flexible options.

Non-conforming loans don’t meet Fannie Mae or Freddie Mac guidelines but still offer borrowers a chance to finance a home. They may include jumbo, bank statement, or VOE loans, giving borrowers flexible options.

How Much Money do you Need Down?

Conforming conventional loans require as little as 3% down for first-time buyers and 5% for borrowers who’ve previously owned a home.

Non-conforming conventional loans offer various options with varying down payment requirements, some less than 20%, and some more.

Our professionals are happy to discuss your down payment options to help you choose the right loan for your needs.

Who Qualifies for Conventional Loans?

We work with many lenders that offer many conventional loan options. So whether you have perfect credit and a low debt-to-income ratio, or special circumstances that don’t allow a typical conforming loan, we have lenders that offer many conventional loan options.

We know what each lender requires and will pair you with the lender that suits your qualifying factors the most.

Get Started Today!

Are you ready to see what conventional loans you qualify for? Contact us today, and let us help you find the most competitive loan that suits your financial needs and qualifications.